The Nagaland Passengers and Goods Taxation Act 1967

NAGALAND ACT 5 OF 1967 
[THE NAGALAND PASSENGERS AND GOODS  
TAXATION ACT, 1967]. 
[Published in the Nagaland Gazette-Extraordinary, Dated  
5th April, 1967.] 
  An Act to provide for the levy of a tax on passenger 
  and goods carried by road in motor vehicles. 
 Preamble.- WHEREAS it is expedient to provide for the levy of a tax on passengers 
and goods carried by road; 
 And whereas the previous sanction of the President of India has been obtained under 
the proviso to article 304 (b) of the Constitution of India; 
 It is hereby enacted in the Eighteenth Year of the Republic of India as follows:- 
 Short title, extent and commencement.- 1. (1) This Act may be called the Nagaland 
Passengers and Goods Taxation Act, 1967. 
 (2) It extends to the whole of the State of Nagaland. 
 (3) It shall come into force on such date as the date as the State Government may, by 
notification in the Official Gazette, appoint. 
 Definitions.- 2. In this Act, unless there is anything repugnant in the subject or 
context. 
(1) “Business” means the business of carrying passengers or goods in a taxable 
vehicle; 
(2) “Commissioner” means the Commissioner appointed under section 7; 
(3) “Fare” includes freight and any sum payable for a season ticket for the hire of 
a taxable vehicle; 
(4) “Goods” include livestock and anything carried in a taxable vehicle but does 
not include- 
(i)  living persons; 
(ii) personal luggage of passengers traveling in such vehicle when it is not charged; 
(iii) equipments ordinarily used with such vehicle; 
(ii) mineral and mineral ores; and  
(iii)petroleum products; 
 
(5) “Owner” means the owner of a taxable vehicle and includes- 
(a) the holder of a permit, if any, granted under the provisions of any law for the 
time being in force to play such vehicle within the territorial limits of the State; 
or 
(b) any person for the time being in charge of such vehicle; or 
(c) any person for the management of the business of owner; or 
(d) any state transport under taking as defined in section 68 A of the Motor Vehicles 
Act, 1939 (IV of 1939)  
(6)  “Motor Vehicle” a public service vehicle or a transport vehicle owned by a 
public carrier, including a trailer when attached to any such vehicle, within the 
meaning of the Motor Vehicles Act, 1939 (IV of 1939). 
(7) “Passenger” means any person traveling in a taxable vehicle, but does not include 
an employee of the owner traveling in the bonafide  discharge of his duties in connection with 
such vehicle, or a public servant traveling for the performance of his duties under this Act; 
(8) “Prescribed” means Prescribed by rules made under this Act; 
(9) “State” means the State of Nagaland; 
(10) “Taxable Vehicle” means a motor vehicle. 
Levi of tax-3. (1) There shall be levied, charged, and paid to the State Government a 
tax on all fares in respect of all passengers and goods carried in a taxable vehicle at the rate of 
ten paisa per rupee value of the fare subject to the minimum of one paisa in any one case the 
amount of tax being rounded to the next higher whole paisa. 
Explanation :-(i) When passengers or goods are in a taxable vehicle and no fare has 
been charged, the tax shall be levied and paid as if such passengers or goods were carried at 
the normal rate prevalent on the route. 
(ii) Where any fare is charged or paid in lump sum on account of a season ticket or as 
subscription or contribution for any privilege, right or facility which is combined with 
the right of a passenger or goods being carried in a taxable vehicle without any further 
payment or at a reduced charge, the tax shall be levied on the amount of such lump 
sum or on such amount as appears to the prescribed authority to be fair and equitable. 
(2) Where passengers or goods are carried in taxable vehicle from any place outside 
the State to any place within the State, or from any place within the State to any place outside 
the State, the tax shall be payable in respect of the distance covered within the State at the 
rate laid down in sub-section (1) and shall be calculated on such amount as distance covered 
in the state bears to the total distance of the journey; 
Method of collection of tax.- 4. The tax shall be paid by the owner to the State 
Government in the prescribed manner; 
Provided that in case of any taxable vehicle, the State Government may accept a lump 
sum in lieu of the tax chargeable on fare in the manner prescribed. 
Explanation :- If a journey begins outside the State, the tax shall become chargeable 
on entry into the State in the prescribed manner. 
Keeping of accounts and submission of return.- (6). (1) An owner may be required 
to keep such accounts and to submit such returns at such intervals and to such authority as 
may be prescribed. 
(2)  If any owner fails, without reasonable cause, to submit any return or pay the tax 
due according to such return within fifteen days of the due date, the assessing authority may 
direct that such owner shall, by way of penalty, pay, in addition to the amount of tax payable 
by him, a sum not exceeding five rupees for each day of the period during which the default 
continues. 
(3)  Any penalty imposed under sub-section (2) shall be without prejudice to any 
punishment that may be imposed under the provisions of section 22. 
(4) If the prescribed authority is satisfied that the tax has not been correctly levied, 
charged and paid, he may, after giving the owner reasonable opportunity of being heard, 
proceed to levy the amount of tax due and recover the same. 
Taxing authority.- 7. (1) The State Government may, for carrying out the purposes 
of this Act, appoint a Commissioner and such other persons to assist him as it may think fit. 
(2) Persons appointed under sub-section (1) shall exercise such powers as may be 
conferred, and perform such duties as may be required by or under this Act. 
 Taxing authority is a public servant.-8. All persons appointed under section 7 shall 
be deemed to be public servants within the meanings of section 21 of the Indian Penal Code, 
1860.(XLV of 1860). 
Penalty for non-payment of tax.-9.  If the prescribed authority is satisfied that any 
owner is liable to pay tax under the provisions of this Act in respect of any period but has 
failed to pay the tax, the said authority may after giving the owner a reasonable opportunity 
of being heard, asses the amount of tax, if any, due from the owner and also direct that the 
owner shall pay in the prescribed manner, by way of penalty, a sum not exceeding one and a 
half time the amount of tax. 
Exemption. -10. The State Government may, by general or special order and subject 
to specific conditions if any, exempt, in the public interest any owner or class of owner from 
the operation of all on any of the provision of this Act. 
Supply of time table and table of fares. -11. An owner shall, in the prescribed 
manner, furnish to the prescribed authority a table of fears and a table regulating timing of 
arrival and departure of a taxable vehicle and such other particulars as the prescribed 
authority may by order from time to time require. 
Recovery of arrear of tax. -12. Any arrear of tax or penalty imposed under this Act 
shall be recoverable as a public demand under the Bengal Public Demands Recovery Act, 
1913. (Bengal Act of 1913). 
Tax of deceased payable by representative. -13. Where an owner dies before 
payment of the tax due under this Act, his executor, administrator or other legal 
representatives shall be liable to pay, out of the estate of the deceased to the extent to which it 
is capable of meeting the charge. 
Liability in case of discontinued firm or association. -14. Where the business 
carried on by a firm or an association of persons, other that a company as defined in the 
companies Act, 1956 (1 of 1956) and in respect of which tax is due under this Act is 
discontinued or the association of persons is dissolved, the tax shall be levied upon and 
recovered from jointly and severally every person who at the time of such discontinuance or 
dissolution was a partner of such firm or member of such association; and all the provision of 
this Act shall apply accordingly. 
Power of entry and Inspection. -15.  The prescribed authority may enter and inspect 
any place ordinarily used by the owner for garaging a motor vehicle or keeping accounts of 
his business for the purpose of seeing or verifying whether the provisions of this Act or the 
rules framed there under are being complied with and countersign any documents during the 
course of such inspection. 
Erection of checks posts.-16 (1) If the State Government considers it necessary that 
with a view to preventing or checking evasion of tax under this Act it is necessary so to do, it 
may by notification in the Official Gazette, direct the setting up of a check post or the 
erection of a barrier or both, at such place or places as may be notified. 
(2) At every check post or barrier mentioned in sub section (1), or at any other place 
when so required by the prescribed authority, the owner shall cause a taxable vehicle to stop 
and remained stationary in order to enable said authority to carry out any duty imposed by or 
under this Act and the said authority may for doing so enter travel in such vehicle. 
Restriction on the use of taxable vehicle in certain cases.-17.  No taxable vehicle 
shall be plied in the State- 
(a) in case any tax or penalty payable in respect thereof remains unpaid for more than 
fifteen days, until such tax or penalty is paid, or 
(b) in case the returns required by section 6 have not been submitted, until the returns 
are submitted; 
Provided that the prescribed authority may, if the owner proves to its satisfaction that 
the failure to submit the returns referred to in clause (b) was not deliberate, exempt such 
vehicle from the operation of this section. 
Appeal to the prescribed authority.-18 (1) Any owner objecting to an order passed 
under this Act may, within thirty days from the date of the service of such order, appeal to the 
prescribed authority against such order, provided that this period may be extended by the 
prescribed authority for good and sufficient reasons to be recorded in writing; 
Provided also that no appeal shall be entertained by such authority unless it is satisfied 
that the amount of tax assessed or penalty imposed has been paid; 
Provided further that such authority, if satisfied that an owner is unable to pay the tax 
assessed, may for reasons to be recorded in writing, entertained an appeal without such tax 
having been paid. 
(2) In disposing of an appeal under sub-section (1) the Appellate Authority may- 
(a) Confirm, reduce, enhance or annul the assessment, or 
(b) set aside the assessment and direct a fresh assessment after such enquiry as may be 
ordered, or  
(c) confirm, reduce annul the order of penalty, 
(3) The order of the appellate authority shall be final excepts as provided in section 19 
and 20. 
Revision by Commissioner. -19. (1) The Commissioner may call for and examine 
the record of any proceeding under this Act, and if he considers that any order passed there in 
by any authority other than that appointed under sub-section (2) of section 7, is erroneous in 
so far as it is prejudicial to the interest of revenue, he may, after giving the owner an 
opportunity of being heard and after making or causing to be made such enquiry as he deems 
necessary, pass such orders thereon as the circumstances of the case justify, including an 
order enhancing or modifying the assessment, or canceling the assessment and directing a 
fresh assessment. 
(2) In the case of any order other than an order to which sub-section (1) applies passed 
by any authority other than the Commissioner, he may, either of hiss own motion or on a 
petition by the owner for revision, call for the record of any proceeding under this Act in 
which any such order has been passed and may make such enquiry or cause such enquiry to 
be made, and subject to the revisions of this Act, may pass such order thereon, not being an 
order prejudicial to the owner, as he thinks fit. 
(3) In case of a petition for revision under sub-section (2) by an owner, the petition 
shall be made within ninety days from the date on which the order in question was 
communicated to him or the date on which he otherwise came to know of it, whichever is 
earlier; 
Provided that the Commissioner before whom the petition is filed may admit it after 
the expiration of the period of ninety days if he is satisfied that for reasons beyond the control 
of the petitioner or for any other sufficient cause, it could not be filed within time. 
(4) The Commissioner shall not revise any order under this section in the following 
cases:- 
(a) Where an appeal against the order lies under section 18 or 20 but has not been 
made and other time within which such appeal may be made has not expired, or in 
the case of an appeal to the State Government, the owner has not waived his right 
of appeal; or  
(b) Where the order is pending on appeal under section 18; or  
(c) Where the order has been made the subject of an appeal to the State Government. 
Explanation :- An order by the Commissioner declining to interfere shall, for the 
purposes of this section, be deemed not to be an order prejudicial to an owner. 
An appeal to the State Government.- 20. (1) Any owner objection to an order 
passed in appeal under section 18 or passed in revision under subsection (1) of section 19 
may appeal to the State Government within sixty days of the date on which such order is 
communicated to him. 
(2) The State Government may admit an appeal after the expiration  of the sixty days 
referred to in sub-section (1) if it is satisfied that for reasons beyond the control of the 
appellant or for any other sufficient cause it could not be filed within time. 
(3) An appeal to the State Government shall be in the prescribed form and shall be 
verified in the prescribed manner, and shall be accompanied by a fee of twenty five rupees. 
(4) The State Government may, after giving the owner an opportunity of being heard, 
pass such orders thereon as it thinks fit, and shall communicate any such orders to the owner 
and to the Commissioner. 
21. (1) Within sixty days from the date of service of any order under section 20, the 
owner may, by petition in writing requisite the State Government to refer to the High Court 
any question of law arising out of such order of the State Government or the State 
Government may make such reference out of its own motion. Where the petition is made by 
an owner, it shall be accompanied by a fee of one hundred rupees. 
(2) Within sixty days of the petition under sub-section (1), the State Government  
shall, subject to the provisions in sub-section (3), draw up, after such hearing and enquiry as 
may be considered necessary, a statement of the case and refer to with its opinion thereon to 
the High Court. 
(3) The State Government may reject the application under sub-section (1) and refuse 
to take the case on the ground that it is time barred or otherwise incompetent, or that no 
question of law arises and the application may, within thirty days of such refusal withdraw 
the application and if he does so, the fee paid shall be refunded. 
(4) Where the application under sub-section (1) is rejected on the ground that no 
question of law arises and where no action is taken by the applicant under sub-section (3), he 
may, within ninety days from the date of such rejection, apply to the High Court against the 
order rejecting the applications, and if, upon receipt of such an application, the High Court is 
not satisfied with the correctness of the decision, if may require the State Government to state 
the case and refer it and, on receipt of any such requisition, the State Government shall state 
and refer the case accordingly. 
(5) Where the application under sub-section (1) is rejected on the ground that it is 
time barred and where no action is taken by the applicant under sub-section (3), he may 
within ninety days of the date of such rejection, apply to the High Court against the order 
rejecting the application, and if upon receipt of such an application, the High Court is not 
satisfied with the correctness of the decision, it may require the State Government to treat the 
application under sub-section (1) as made within time. 
(6) Where the High Court is not satisfied that the statement in a case referred under 
the section is sufficient to enable it to determine the questions of law raised thereby, it may 
refer the case back to the State Government to make such additions thereto or such alteration 
therein as may be directed and the State Government shall there upon comply with the 
direction and re-submit the case accordingly. 
(7) The High Court upon the hearing of any such case shall decided the question of 
the law raised thereby, and shall deliver its judgment thereon containing the grounds on 
which such decision is based, and shall send to the State Government a copy of such 
judgment under the seal of the High Court and signature of the Registrar, and the State 
Government shall, on receipt of the copy of the judgment, order disposal of the case 
accordingly. 
(8) Where a reference is made on the application of an owner, the costs shall be in the 
discretion of the High Court. 
(9) Notwithstanding that a reference has been made under this section to the High 
Court, payment of tax shall not be stayed pending disposal of such reference; but where the 
amount of tax is reduced as the result of the reference, the excess shall be refunded in 
accordance with the provisions of this Act. 
(10) Section 5 of the India Limitation Act, 1908 (IX of 1908) shall apply to an 
application to the High Court by an order under this section. 
Offences and penalties.- 22. (1) Whoever – 
(a) fails to pay the tax due from him within the prescribed period; or 
(b) fraudulently or willfully evades the payment of any tax due under this Act; or 
(c) allows any passenger to travel without a ticket or goods to be carried without 
issuing a receipt in a taxable vehicles as required under section 5; or 
(d) obstructs any prescribed authority from making entry and inspection under section 
15 or sub-section (2) of section 16; or 
(e) uses any taxable vehicle in contravention of section 17; or 
(f) contravenes any other provision of this Act or the rules made thereunder; 
shall be liable, on conviction, to a fine which may extend to one thousand 
rupees and when the offences is continuing one on a subsequent conviction to 
a fine not exceeding twenty five rupees for each day of the continuance of the 
offence. 
 (2) No Court shall take cognizance of any offence under this Act or the rules framed 
thereunder, except on a complaint in writing by the prescribed authority, and no Court 
inferior to that of a Magistrate of the First Class shall try any such offence. 
Power to compound offences. – 23. (1) The prescribed authority may, at any time, 
accept from any person who has committed an offence under section 22, by way of 
composition of offence, a sum of money not exceeding one thousand rupees or double the 
amount of tax involved, whichever is greater, in addition to the tax to be recovered. 
(2) On payment of such sum of money as may be determined under sub-section (1) 
the prescribed authority shall, where necessary, report to the Court that the offence has been 
compounded and thereafter no further proceedings under section 22 shall be taken against the 
offender in respect of the same offence and the said Court shall discharge or acquit the 
accused, as the case may be. 
Bar to proceedings. – 24. No prosecution shall lie against any person authorized 
under this Act, for anything done or purported to have been done in good faith under this Act 
or the rules made thereunder. 
Exclusion of civil courts.- 25. No Civil Court shall have jurisdiction in any matter 
which the State Government or any prescribed authority is empowered by this Act or the 
rules made thereunder to dispose of or take cognizance of, and regarding the manner in which 
the State Government or any prescribed authority may exercise any power vested in it by or 
under this Act or the rules made thereunder. 
Refunds. -26. The prescribed authority shall, in the prescribed manner, refund to an 
owner applying in this behalf, any amount of tax paid by such owner in excess of the amount 
due from him under this Act. 
Delegation of powers. – 27. The Commissioner may subject to such restrictions and 
conditions as may be prescribed, delegate, by notification in the Official Gazette, any of his 
powers under this Act to any person appointed under section 7 to assist him. 
Power to make rule. – 28. (1) The State Government may make rules, consistent 
with the provision of this Act, for securing the payment of tax and generally for the purposes 
of carrying into effect the provisions of this Act. 
(2) In particular and without prejudice to the generality of the foregoing power, the 
State Government may make rules – 
(a) prescribing the manner in which  and the intervals at which tax shall be paid under 
section 3 and section 4; 
(b) prescribing the authority or authorities for the purpose of carrying out any 
function under any of the provisions of this Act; 
(c) prescribing the forms of tickets and receipts under section 5; 
(d) prescribing the manner of payment of tax under section 4 and penalty under 
section 9; 
(e) prescribing the manner of the exhibiting the table of fares and the time table under 
section 11; 
(f) prescribing the manner in which an appeal/petition may be filed under section 18 
or section 20; 
(g) prescribing the manner in which a revision application may be preferred under 
section 19; 
(h) prescribing the manner in which a reference/petition may be made under section 
21; 
(i) prescribing the manner in which refund under section 26 shall be made; and  
(j) providing for any other matter for which rules can be or may be prescribed. 
(3) All rules made under this section shall be laid as soon as possible after they are 
made, before the Nagaland Legislative Assembly while it is in session and shall be subject to 
such modification as the Legislative Assembly may make during the session in which they 
are so hard or the session immediately following the Nagaland Legislative Assembly agree in 
making any modification in the rule or the Nagaland Legislative Assembly agree that the rule 
should not be made, the rule shall thereafter have effect only in such modified form or be of 
no effect as the case may be; so however, that any such modification or annulment shall be 
without prejudice to the validity of anything previously done under that rule. 
 

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